Insurance Premiums Rise Because of Out-of-Control Medical Costs

Wonder why insurance premiums keep going up? It's the exploding cost of medical care.

Most of what customers pay in premiums comes back to them as payment for medical costs. On average, in 2009 insurance companies paid 87 cents of every premium dollar for their customers' medical care. Insurance company administrative costs have actually risen more slowly than customers' medical expenses (of 4.9 percent compared to 5.3 percent growth in benefits).¹

Premiums track closely with medical benefits we pay here at BCBSNC, while our administrative costs have remained relatively flat.²

Want more straight talk about health care costs, including what BCBSNC is doing to help and what you can do to help? Visit our health care cost page.